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3 reasons why in-app bidding is the best monetization strategy for the iOS privacy updates

With the iOS 14 privacy changes, the App Tracking Transparency framework is shifting entirely to protect user data and limit tracking capabilities. While only about 40% of users currently limit ad tracking on their iOS devices, around 80% are expected to start doing so once the iOS privacy updates take effect. 

How does this affect developers who are monetizing their apps on iOS? The good news: If you switch to in-app bidding, you can still maximize revenue, get access to granular data, and save time. In fact, these benefits have attracted 95% of the publishers on the ironSource mediation to use in-app bidding on iOS. Let’s look into three of the biggest reasons in-app bidding is the best way for developers of all sizes to monetize after the iOS privacy updates.

1. Maximize revenue when eCPM fluctuates

As developers try to determine the best strategy in this new environment, we can expect instability with eCPMs in the short-term. With ad personalization far more limited, reaching relevant audiences and acquiring high-quality users are more difficult - this is likely to impact CTR and LTV and reduce CPM. In this uncertain environment, advertisers will adjust their spending and eCPM will likely fluctuate. 

From day 1 of the privacy changes, developers can ride out the turbulence, ensure their monetization strategy is fully optimized, and get the most value for each bid with in-app bidding, which acts as an auction in which ad sources vie to bid on each impression. This competition maximizes revenue while maintaining consistency and stability in performance - effectively reducing the effects of eCPM volatility.

2. Spend less time on monetization and more time on other parts of your iOS strategy

Updates to iOS privacy regulations introduce an entirely new framework to monetization and UA. So you should expect a learning curve in understanding features like conversion values and campaign limits.

In-app bidding automates monetization optimization so you can focus on shortening the learning curve in other parts of your iOS strategy after the privacy updates go into effect. Automatically finding the best bid for each impression eliminates the need for daily manual adjustments and opens up more time to focus on optimizing your growth strategy on both the monetization and UA sides. For example, to prepare for iOS privacy updates, you can spend time A/B testing ad implementations and new geos that could improve KPIs. Trying out new ad units or pacing and new country groups - and getting access to data that shows their impact - can optimize both sides of growth.

3. Continue to optimize monetization with accurate data

The iOS 14 privacy updates are creating a world in which user data is in a “black box” - making it difficult for advertisers to both track users and predict how much they’ll be worth. The limitations on user data means you need to rely on contextual data like session depth and OS instead of the granular, user-level data that was previously available. 

Even though the new iOS privacy framework significantly limits user identifiers, you can still get a fully transparent look into your monetization and optimize performance with in-app bidding. Breaking down performance with accurate, impression-level data that’s based on real-time bids gives you granular insight into your monetization and can help you maintain a data-centric approach even when user tracking is more limited. Bidding enables developers to learn from data within a user session to better predict the next price of a bid, ensuring your monetization strategy is always optimized and you’re getting the most value for each impression. 

Maintain momentum and grow your app business

The iOS 14 privacy updates are likely to disrupt much of the mobile advertising industry, but it doesn’t have to impact your app business negatively. In-app bidding can help maximize revenue, maintain stability, and give you access to valuable performance data during uncertain times like these.

 

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